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(business strategy W3) - Coggle Diagram

- - - - result from a combination of a few resources
      - capabilities are the capacity of the firm to actually do something, that is to perform some important activity.
      - Even if having a capability, firm still need to stay alertness
      - To achieve competitive advantage
        
        Key factors: history of a company, experiences, capability of development, the influence of its founders, path dependence, managerial foresight
        
        The thing that create value in the business, for example, the set of activities, or the resource, or capability
        
        uniqueness & heterogeneity
      - Results from learning, encoded in organizational routines
      - Need not a map to a functional area
      - Entails deploying, combing and linking resource
    - - tangible resources
        
        financial resource
        
        cash in hand, Borrowing capacity
        
        physical resources
        
        buildings, machinery, and real estate.
      - Intangible resources
        
        technology
        
        Human capital
        
        relationship
      - which resource is more important for company?
        
        the one who can increase customer value and/or reduce cost in the business and thus increase the price cost wedge
        
        which resources are more difficult for firms to own or access exclusively
        
        Nowadays, the intangible resource is becoming more and more important
        
        intangibles resource are much more important today for creating economic value
        
        firms have greater access to financial and physical resources in the modern market-based economy.
        
        Example
        
        Reduce the cost and improve the productivity are both important for firm in industry
        
        Ex.resource in secondary industry and technology industry.